Mortgage Renewal Homework

Tracy Head • July 15, 2024

Unprecedented activity five years ago means that there are now a significant number of mortgages up for renewal.

Most clients initially sign a five-year mortgage term. That means that at the end of the five years their mortgages come up for renewal. 


Statistics that I’ve seen from several different sources indicate that approximately two out of three Canadians break their mortgages early.


What do I mean by break?


What I mean by break is that if at some point during the five years they move, sell their home, or refinance their original mortgage they have broken their mortgage.


If you have not made any changes to your mortgage, at the end of the five-year term your mortgage comes up for renewal.

Lenders handle renewals differently. Some start aggressively offering renewal options to their clients at least six months ahead of time. Others send renewal offers at the three-month mark. Some follow up repeatedly with phone calls; others wait for the client to reach out to them.


A significant number of lenders offer a 120 day rate guarantee for clients that are approaching their renewal date.

If your mortgage is coming up for renewal it is important that you do your homework to make sure you are being offered a competitive rate.


A client that had just received a renewal offer in the mail from her financial institution called me last week to talk about the rate the bank was offering her. She felt it was much higher than what she was seeing advertised online.


I reviewed my rates. The same lender was offering new clients in the door a rate that was almost one per cent lower. 

My suggestion to her was to go call the lender and see if they were able to offer a lower rate. Less than five minutes on the phone with the lender’s customer relations team and they had reduced the rate to match what was currently available for new clients.


In some cases lenders are not offering competitive rates. If so, you are able to switch your mortgage to a new lender at the maturity date.


Many lenders review their clients’ financial situations before offering renewal rates. If there have been significant changes, they may offer a higher rate to account for (perceived) higher risk. As an example, if the client’s credit score has dropped considerably or if there is a great deal of new debt they may not be offered the lowest rates available.


In some cases, clients who do have multiple loans and credit cards outstanding may find that renewal is a good time to refinance and consolidate their consumer debt. A consolidation may help reduce their monthly expenses and will over time help bring their credit score back up.


Whether your mortgage is coming up for renewal, you are initially purchasing your home, or you are restructuring down the road, it is important to spend some time looking into your options. 


We are happy to discuss current rates with you if your mortgage is coming up for renewal. In most cases it makes sense to stay with your lender as they will most often match rates available with other lenders. In others, it makes sense to look at switching to a new lender if the rate you are being offered is not competitive.



Take a few minutes and do your homework. An informed decision can save you thousands of dollars in the long run! 

Tracy Head

Mortgage Broker

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Home Inspection

By Tracy Head • March 28, 2025
In an ideal situation I have some time upfront to work with clients on their pre-approval. I like to go over what to expect in terms of both the process and what to expect in terms of closing costs when they have an accepted offer on a home. We usually talk about potential expenses like property transfer tax, an appraisal, a home inspection, home insurance, and legal fees. This time of year we also talk about upcoming property taxes for anything they are purchasing before July 1st. I think human nature is that we want to minimize our expenses and make sure we are getting the most bang for our buck. There are a few areas of cross-over where I anticipate the clients’ realtor will be speaking to them about items like the requirement to organize home insurance and the importance of a home inspection. In practice I think most realtors encourage their buyers to move forward with a home inspection because they want to ensure clients are not buying any surprises that will create headaches down the road. Sometimes clients are buying privately and are not represented. In those cases I always urge them to include a home inspection as one of their conditions. I have had clients question the need for a home inspection, particularly if they are buying a condo or a new build. Two recent examples have popped up that reinforce for me the importance of a home inspection: - We are working with a lovely first-time home buyer in the lower mainland. Her budget isn’t huge so she has been waiting and watching for the right property to come up, and for her offer to be the one chosen. The stars aligned for her last week. Her financing was approved and all of the financing conditions were signed off by the lender. We were doing a happy dance for her and had a rude awakening the day she did her home inspection. The home inspector found an ongoing leak in the kitchen that has created a soft wall which is indicative of a bigger problem. On a surface level the kitchen is beautiful and relatively recently updated. As a first-time home buyer with no family nearby our client was thrilled by the aesthetics of this condo, then devastated by the potentially expensive work needed to repair / rectify the damage. - The second situation really caught us by surprise. We have clients on Vancouver Island who have an accepted offer on a brand-new home that has never been lived in. They did choose to invest in a home inspection and we are so glad they did. It turns out that somehow some of the larger windows were installed incorrectly and this has created damage to the windows and a leak in one corner. Again, with a new build the temptation would often be to skip the home inspection. Yes, any issues with this home will be covered by warranty. Having the home inspection done and being aware of the issues upfront gives them a lot more power with respect to having these defects repaired quickly. Now that I’ve driven that point home, its important to know that not all home inspectors are created equal. Do your due diligence – look at reviews, look at the home inspector’s qualifications and length of time / experience doing home inspections. Going with the cheapest option is not always the best option.  Buying a home is the biggest investment you will likely make. Trying to save a few hundred dollars upfront may end up costing you thousands of dollars and sleepless nights down the road. Save yourself the pain and aggravation of hidden issues in your home.

Rate Wars

By Tracy Head • March 24, 2025
Annnnnnnd …. Its on!  Spring has arrived and with it comes a significant drop in mortgage interest rates. Over the last few months when I’ve chatted with clients who are renewing or planning to buy in the spring market I have said in almost every conversation that by mid-March rate wars tend to start. Regardless of what is happening in the interest rate environment as a whole it seems by the third week of March lenders start sharpening their pencils. Over the last two weeks we started to see lender bulletins trickle in advertising quick- close rate specials (ie: for mortgages finalizing within 60 days) and rate drops across the board. Today I have had updates from six different lenders and its only noon. Why is this important to you? Not all lenders have the same policies with respect to dropping their rates once your mortgage has been approved. When you go into a holding pattern after your mortgage has been approved but before it has finalized rates can change. If they go up, you are covered by the rate you have in place. If they go down, how does your lender deal with your file? Some lenders won’t drop your rate. Some lenders will drop it once. Some maybe twice. There are a few lenders that will drop your rate an unlimited number of times up to a few days before your mortgage finalizes. When I am choosing a lender for my clients this is absolutely one of the most important things I consider. All things being equal, if I can place a mortgage with a lender that offers unlimited rate float downs I will. I watch my calendar of upcoming closings and proactively reach out to those lenders to request better rates for my clients. It’s a win to be able to get the benefit of falling interest rates without having to change lenders. If you are buying a home, renewing your mortgage, or looking to refinance this is a key question you should ask your mortgage person. Find out whether they will adjust the rate on your mortgage and what the process is (do you have to request this?). At the same time, find out how many times they are able to reduce the rate for you. Regardless of the answer I suggest touching base with your mortgage person or lender periodically up to the time your finalize your mortgage to confirm you are receiving the lowest rate they have available for you.
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